By Duncan Mlanjira
Electricity Supply Corporation of Malawi (ESCOM) owes banks and other suppliers over K40 billion due to among other things, inadequate revenue generation caused mainly by low power generation as well as effects of COVID-19 pandemic.
This was disclosed on Monday when newly-appointed Minister of Energy, Newton Kambala visited ESCOM Power Station at Chichiri in Blantyre on a familiarization tour as well as for a comprehensive meeting with members of management.
Kambala signing the visitors book
Kambala told the media after touring ESCOM’s National Control Centre that management will be asked to write a report why they ended up with such huge debts to see how the government can come in to assist.
Kambala also said it is disheartening that ESCOM has been plundered by unscrupulous politicians and cadets from the past government such as the massive siphoning of fuel by non-members of staff, most of whom were connected by the previous government.
After visiting ESCOM’s National Control Centre
He said once ESCOM presents its report, the new government is set to make sure that such corruption should be stopped once and for all to help the corporation stabilize in order to provide excellent services to the people and the industry.
“The Government wants to make sure that ESCOM should be protected from corruption and we will see how the Ministry of Finance can come in.
“From now on, we want ESCOM and other parastatals to be prudent enough on how they use their resources. People should not be stealing money from institutions,” he said.
Appreciating the diesel generators managed
by Aggreko
One of the suppliers ESCOM owes money to is its sister company, Electricity Generation Company (Malawi) Ltd (EGENCO) and when asked if this company is necessary, Kambala said there was need to assess if EGENCO is serving its purpose well.
He said the idea to delink ESCOM’s services was necessary at the point it was initiated but government might consider to evaluate if EGENCO is still needed.
The Minister said from what he had been familiarized with on his tour of ESCOM’s National Control Centre, the company’s technology operations have improved to provide good services.
Coronavirus alert
Of late power load shedding has minimized mostly as ESCOM is utilising fully the power generators at Power Station managed by Aggreko.
ESCOM’s Chief Executive Officer Allexon Chiwaya said due to the COVID-19 pandemic most of the industries where most of the company’s revenue comes from have been shut down and thus they fail to honour their debts.
He also said they were generating less that 300 megawatts from the needed 800 megawatts which made them generate inadequate revenue.